Hanscom Federal Credit Union (Manscom AFB, MA) offering a sweet savings vehicle that provides 5 percent on automated deposits for up to one year.
The CU Thrive Automated Savings Program allows the member to lock in the rate and automatically make deposits to the account for an entire year.
Members can opt to automatically transfer $5 to $500 from their credit union checking account per month, plus the account has no fees.
The account launched four years ago and according to Diana Burrell, Communications Specialist, it has been an amazing tool to generate memberships and deposits.
Burrell reports that the average automated transfer for October through December 2018 is $380.81 per month. “As of December 2018, we have 2,618 CU Thrive accounts open,” she says. “Keep in mind this is a 12-month account, so this number fluctuates month to month based on accounts opening and closing due to the anniversary dates.”
Since June 2015, the credit union has had an average of 2,500 members with CU Thrive accounts with an average cumulative total of $6 million in deposits.
Burrell says the account has been an amazing way to save for most members because the automated transfer component allows the member to set savings and forget it. “You end up not missing the money and it always gets transferred into the account.”
Additionally, if members find that finances are a little tight during the month, they can stop the automated transfer. “Just call the credit union and ask to have the transfer stopped for however long you need.”
While members aren’t charged a fee for stopping the transfer, they can’t make up for those skipped deposits later on in the year. The account is only for a full calendar year, so if the account is opened in March 2018, automatic scheduled deposits will occur until that member’s March 2019 anniversary date.
Because the rate is so attractive, marketing has been extremely easy. “We blog about it and a lot of its success has to do with word of mouth too. For the most part, people can’t believe they can earn a 5 percent APY, but it’s true.”
The credit union also uses the product for member acquisition plus staff members do a great job explaining how members can maximize their savings. For instance, spouses can each have an account to double their savings. Additionally, many family and friends often tell others about it.
Burrell says that while members are allowed only one account per year, they can certainly open a new account when the year is over to keep the savings habit going.
Source: Diana Burrell, Communications Specialist, Hanscom Federal Credit Union, Hanscom AFB, MA; phone (781)698-2179; e-mail:firstname.lastname@example.org.